The Rights Stuff 2013: Survey of Australian rights trading

For the 11th year in a row, Think Australian has surveyed Australian rights managers and literary agents to gauge the health of Australian rights trading and book exports. Andrew Wrathall reports on the survey’s findings. 

More than half of publishers reporting rights income growth

Australia’s income from publishing rights deals is increasing, but the rights market is becoming a difficult place to make deals, according to Think Australian’s annual survey of Australian literary agents and rights managers.

The good news is that the number of Australian rights managers and literary agents who are reporting income growth from rights deals has increased to more than half (59%) this year, up from 44% last year and 38% the previous year. The number of respondents reporting income growth of more than 10% has also increased to over a third (35%) this year, up from 28% last year. Less than a quarter of respondents (24%) said their income had remained the same over the past 12 months, which was significantly less than the 44% who reported no change in their rights income last year. The bad news is that 18% of rights managers and literary agents are reporting a decline in income, which is more than last year’s respondents (11%) and the previous year’s (eight percent). 

According to our survey, the average number of rights deals executed by an Australian publisher or literary agent during the past 12 months was 27, which is similar to last year’s number (30) and the previous year’s (29). The largest reported deal was worth a whopping US$550,000/€410,616, much more than last year’s largest deal (£120,000/€140,000) and the previous year’s (A$270,000/€185,000). The smallest reported deal was just A$250/€171. The average highest deal was A$66,000/€45,200, an increase on last year’s average highest deal of A$55,000/€38,200. The average smallest deal was A$690/€470, down on last year’s average smallest deal of A$1240/€850.

Despite some good news, the rights market remains challenging for many Australian rights managers and literary agents. Almost half (47%) of respondents said the rights market has become slightly worse in the past 12 months, which is up on last year’s figure (43%), while five percent said it has become much worse, the same as last year. However, there was also greater optimism, with nearly one quarter (24%) of respondents reporting that the rights market has improved in the past 12 months, up from 11% last year. Less than one quarter (24%) said that the rights market has remained the same in the past 12 months, down from 42% last year.  

Who is buying Australian books? 

The United States, the United Kingdom and Germany remain the top three markets for Australian rights sales, both in terms of income and the number of deals, according to Australian rights managers and literary agents (see list on page 10). China has jumped from seventh to fourth place in terms of income, but has dropped from third to fifth place in terms of the number of deals. Korea has dropped slightly on both lists, while Singapore and Italy are new entries on both lists. Respondents reported a decline in interest for Australian books in the United Kingdom, United States and France.

Just under half of rights deals (49%) were for markets in languages other than English, similar to last year’s figure (51%) but significantly down on 2011 (77%). The most lucrative foreign-language territories were identified as Germany, China, France, Korea, Japan, Italy and Brazil, which is similar to last year’s list. 

Developing markets 

Each year, respondents are asked to nominate the territories that they feel are increasing in importance. Up-and-coming markets most commonly nominated this year were China, Brazil, Korea, India and Poland—exactly the same list as last year. 

Which categories are selling? 

The highest-selling category for rights sold overseas this year was nonfiction books, which was more popular than fiction and much more popular than children’s books. In nonfiction, memoir was the most popular sub-category, followed by popular science and health. However, most respondents reported no surge of interest in any particular category. Some respondents suggested a decline in general nonfiction, but many reported that there was no decline for any particular category.

Preferred ways to reach the world market 

The Frankfurt Book Fair is still Australian rights managers and literary agents’ most-preferred way of reaching the world rights market, followed by formal arrangements with overseas rights agents and the London Book Fair. The Bologna Children’s Book Fair has dropped a few spots below the Australia Council’s Visiting International Publishers program, literary scouts and internet-based rights marketplaces. Formal arrangements with sister companies overseas has also dropped a few spots this year (see table on page 10). 

On the question of what the Australian government should do to encourage exports, respondents asked for increased funding to the Australia Council, the continuance of the Visiting International Publishers program, subsidies for participation in international marketing forums, funding for travel to book fairs, and funding for small publishers to travel overseas. 

The digital era 

When responding to survey questions on digital rights, half of the rights managers and literary agents said that retaining geographic/territorial restrictions on ebooks is essential. Another half said that obtaining world digital rights is crucial. Most (78%) reported that overseas publishers demand digital rights along with print. 

It appears that contractual conventions are slowly starting to reflect digital realities, with half of respondents reporting that conventions have to be changed to match the new digital world, down from a majority of respondents last year. 

Future prospects 

Australian rights managers and literary agents are more optimistic this year about future rights sales. Almost half of respondents (47%) believe the rights market will improve over the next 12 months, which is almost double last year’s figure (24%). Approximately one third (35%) expect the market will stay the same, down from 47% last year. Another 12% believe the market will become slightly worse, down from 24% last year, and a final six percent feel it will become much worse. When asked why they felt this way about future rights sales, respondents pointed to the economic downturn in Europe and market fluctuations. We’ll be back in 12 months to see how they’ve gone. 

The top markets for Australian rights sales 2013

By income

1. United States (1)
2. United Kingdom (3)
3. Germany (2)
4. China (7)
5. France (4)
6. Korea (5)
7. Japan (6)
8. Italy (-)
9. Singapore (-)
10. Brazil (9) 

By number of deals

1. United Kingdom (2)
2. United States (1)
3. Germany (6)
4. Poland (10)
5. China (3)
6. Korea (4)
7. Turkey (-)
8. France (5)
9. Singapore (-)
10. Italy (-)

(Last year’s ranking is in brackets.)
Source: Think Australian survey of Australian literary agents and rights managers, July 2013

Most important conduits for selling international rights 2013 

1. Frankfurt Book Fair (1)
2. Formal arrangements with overseas rights agents (2)
3. London Book Fair (3)
4. The Australia Council’s Visiting International Publishers program (5) 
5. Literary scouts (6)
6. Internet-based rights marketplaces (8) 
7. Bologna Book Fair (4)
8. BookExpo America (10)
9. Formal arrangements with sister companies overseas (7)
10. Think Australian export magazine (9)

(Last year’s ranking is in brackets.)
Source: Think Australian survey of Australian literary agents and rights managers, July 2013

Past and expected future growth in the rights market  

Source: Think Australian survey of Australian literary agents and rights managers, July 2013